All Forum Posts by: Adolfo Cuellar

Ideally you'd be able to out in an offer with an FHA loan and get the property. The competition in Portland right now might just keep you from doing that. Since an FHA loan requires as little as 3% down, the seller of the property gets the impression that you don't have much cash in the bank so there's a chance you would walk during negotiations if you were asked to make repairs, you'd realize you didn't even have the 3% down when it comes time to close so everything false apart, etc...

A Conventional loan is assumed as more likely to close because of the higher down payment. And a cash offer usually waves all contingencies so it's practically guaranteed to close. 

Living in one unit and renting out the rest is awesome. If you can get the offer accepted with an FHA loan, do it! This way your leveraging as much as possible.

I rarely see multifamilies, even in the outskirts of Portland, on the market for less than 250k. 

If you're only required to put down 3% + 6k (ish!!) for closing costs you might have enough at 15k-20k. If it's any more than 3% down and/or purchase price is over 250k then you might want to have more cash available. 

That was allot of info. Feel free to ask me more or it might be easier to hear me say some of this-

Cheers,

A

Hey @Baxter Finch

I've lived in Portland for 10 years and it's great here! 

I'm currently in the market for a multifamily, as those are my favorite investments in real estate. It sounds to me like you have a great plan and I agree with 

@Chris Parrish as far as engaging your ideas first, then figure out what you need along the way. 

Cheers, 
Adolfo

Did you find this door-knocking?

Hey, 

I'm going for something very similar in Portland or the surrounding areas so I've spoken with a few lenders about almost exactly the same thing (minus the father-in-law part). 

I recently put an offer in on a HUBZU property on 73rd and Halsey. It was a duplex at around 265k, which is unheard of in Portland's market, specially that area, because things move fast and usually go for higher than ask. I was splitting everything down the middle with an investor who knows contracting and I'm a realtor - good team! ;) We ended up loosing the auction and our income history wasn't long enough (2 full years)

Keep in mind that when you're going with FHA loans:

- Both you and the 'co-borrower' must promise, on paper, to use the property as your primary residence. So, your mail goes there. 

- The offer becomes way less attractive than any other offer that is a conventional loan because the seller assumes that you have less cash lying around so there's a higher chance of the deal falling through due to failure to finance (which means you get your earnest money back, generally).

Consider saving up for a conventional or 'Rehab' loan which looks much more attractive than FHA and is more popular in this market. My first move would be to call up a lender and talk to them about what your planning, get the specs and get a preapproval so you know what number you're working with and go from there.

If you need s good lender out here send me a message and I'll connect you!

I hope that helps!

Thanks for the reminder @Randy Johnston

It was great to hang out with you guys the other day! 

Thanks for putting this together - 

@Nick Brubaker@Randy Johnston

Yes

6pm this Wednesday. We can meet at Portland City Grill for the view (happy hour ends at 7pm). 

Sound good?

@Nick Brubaker

@Randy Johnston

@Robert Laird

Yes! We could even check out some properties since you've got a few days. 

My number is 786-385-0966

Feel free to call/text me and we'll coordinate. 

-Adolfo

Sounds to me like targeting investors as a broker goes against the grain a bit because 6% of sub 50k for an investor is much less than 6% of 300k for Sally and Mark. 

But volume is another consideration. On of my mentors mixes everything up. When she has a seller that's trying to move quickly she'll assign and sell to an investor, when she has a couple purchasing a house she'll understand exactly what they need. 

I look to being as diverse.